Financial experts can help nonprofits protect themselves against fraud

December 9, 2013

Financial experts can help nonprofits protect themselves against fraud

For-profits and nonprofits are at increased danger of cyberattacks and fraud. Small and midsize businesses in particular are at risk because of uncertainty about possible security threats. A study by the Ponemon Institute found that senior management at many smaller companies is failing to prioritize cybersecurity.

For nonprofits, cyberthreats may be even greater
Cyberthreats often come in the form of identity theft or the breach of sensitive financial information. Unfortunately for nonprofits, their charitable nature often puts them in the sights of con artists, both on the Web and in person. Nonprofits that are struggling to meet financial obligations likely do not have the resources to prepare for possible scams or cyber attacks.

Professional financial services can help mitigate fraud risk
One way for organizations to keep the risk of fraud low is to have a strong handle on their finances. Understaffed accounting departments can often fall victim to scams without even noticing it. The theft of financial information through a cyberattack may take a month or more to show up on statements and reports. By that time, the impact of the attack will be much greater.

Professional financial services can supervise a nonprofit's accounting staff or even fully assume the department's responsibility. This not only provides better protection against fraud, but can also free up employees that could be utilized elsewhere.

Experts can also conduct fraud prevention audits so that nonprofits know how vulnerable they are to an attack. Along with these specific audits, organizations can have a review of their accounting systems, payroll and benefit systems. This not only reduces instances of fraud but also helps the organization run more efficiently.

Content presented by First Nonprofit Group, a leading provider of financial consulting services for 501(c)(3) nonprofit employers.

single-post9217

Ready to chat?
Get in touch today to request a no-obligation savings evaluation.

Testimonials

Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.

Prevent Blindness America, Chicago, IL

Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.

Illinois Network of Charter Schools, Chicago, IL

It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios.

Thresholds, Chicago, IL

NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.

New York Council of Nonprofits, Albany, NY

Visually Impaired Preschool Services has been a client of First Non-Profit since it was first offered as a benefit of VisionServe Alliance. We completed a thorough evaluation of cash savings to our agency before taking advantage of this wonderful benefit and it has been a very wise decision. Our experience with the processes from accounting to claims have been professional, expeditious and easy.

Visually Impaired Preschool Services, Louisville, KY

Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!

Neurologic Music Therapy Services of Arizona, Phoenix, AZ

First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.

Visually Impaired Preschool Services, Louisville, KY

The Ensight Skills Center has enjoyed working with First Nonprofit for several years. We are enrolled in their Unemployment Savings Program and although we have not required a lot of intervention, there have been a few times. I know others have dealt with the same problem of unemployment fraud over the last year and in our case, a call to First Nonprofit (they actually answer their phones) cleared up the issue. They also sent us a letter to send to all our employees telling them what they needed to do to prevent this in the future and protect themselves. What a relief! Over the years if I have questions or concerns, they are happy to listen, advise and help if they can. Another BIG advantage of using First Nonprofit is that all the money that is paid into the Unemployment Savings Program lives on my balance sheet as an asset. The money continues to be Ensight’s not the governments. First Nonprofit has certainly given me peace of mind.

Ensight Skills Center, Inc, Fort Collins, CO